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INALUM Signs a Contract with One of the World's Largest Aluminium Producing Companies from the UAE

12 Jan 2021

Jakarta (21/12) - PT Indonesia Asahan Aluminium (Persero) or Inalum signed a contract with Emirates Global Aluminium (EGA), the largest aluminum producer in the United Arab Emirates (UAE). This is a continuation of a business agreement signed by the two companies, and exchanged in front of President Joko Widodo and the UAE Crown Prince in Abu Dhabi on January 12, 2020.

The Indonesian Ambassador to the UAE Husin Bagis appreciated the steps of the two companies to continue their cooperation, which could be the start of investment cooperation for the two companies. "The contracts that are being executed are the EGA technology license and the placement (secondment) of EGA personnel at Inalum," he said after the signing carried out by Inalum-EGA in Jakarta, Monday (21/12).

The technology license contract is a pilot test for optimization of PT Inalum's (Persero) aluminum smelter furnace in Batubara, North Sumatra. "This is a step forward that shows both sides are building trust," continued Husin.

One of the projects that PT Inalum (Persero) hopes can be carried out through a strategic partnership with EGA is the Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan. "The total value of the project reaches USD 800 million," said the Indonesian Ambassador.

The Indonesian Embassy in Abu Dhabi has been actively communicating with Inalum and EGA to assist the negotiation process carried out by the two companies.

"We have ordered the team to help Inalum so that it can get optimal benefits in the cooperation that will be carried out," said Bagis.

Also attending the signing was Deputy Minister I of BUMN Budi Gunadi Sadikin, Deputy Minister of Minerba Herry Purnomo, Managing Director of PT Inalum (Persero) Orias Petrus Moedak, CEO of EGA Abdulnasser bin Kalban, and UAE Ambassador to Indonesia Abdullah Salem Obeid AlDhaheri.

The interest of UAE companies to expand to Indonesia even though during the pandemic is quite high. This was demonstrated by the presence of a business delegation at the Indonesia - UAE Week 2020 event. Seven PEA companies were recorded participating in the activity, namely: Masdar, Abu Dhabi Holding, Emirates Global Aluminum (EGA), Taqa, Alfoah, FAB and Silverpumps.

The signing of the Inalum-EGA contract also closes the Indonesia-UAE Week 2020 event held by the Indonesian Embassy in Abu Dhabi on December 15-21, 2020. The series of activities began with the opening of the First Abu Dhabi Bank (FAB) representative office, cooperation in sending 1,000 nurses, inauguration of the Floating PLTS Cirata, Hearing to the Minister of Energy and Mineral Resources, Signing of Lulu Hypermarket Partnerships with national MSMEs, EGA-Inalum Contract Execution, and other business meetings.